Top 20 Turnaround Stocks in India 2025

Mphasis has quietly positioned itself as a niche IT services player, specializing in cloud migration, AI-driven solutions, and digital transformation. Unlike larger peers burdened by legacy businesses, Mphasis focuses on “next-gen” tech adoption—helping clients modernize faster. The stock’s P/E ratio of 18.5 looks modest compared to growth expectations of 22%, especially in a sector where double-digit growth is often rewarded with premium multiples. Mphasis’s agility, strong order book, and expansion in U.S. financial services give it resilience. While global IT spending cuts could slow short-term momentum, the company’s focus on automation-driven efficiency positions it well for sustained margins. Investors who missed out on Infosys and TCS’s early growth story may see Mphasis as a mid-tier IT stock with multibagger potential.

7. Dalmia Bharat Ltd. (PE: 14.8, Growth: 21%)

Cement may not sound glamorous, but India’s infrastructure boom makes it an underrated growth sector. Dalmia Bharat has emerged as a key player with aggressive capacity expansion plans and a focus on renewable energy integration in production. Trading at a P/E of just 14.8, it looks undervalued for a company targeting 21% growth—driven by housing demand, government road projects, and industrial construction. The company’s lean balance sheet and shift towards green cement enhance both profitability and ESG appeal. While cement pricing power can be cyclical, Dalmia’s scale and regional dominance provide cushion. For long-term investors, this is a “boring but compounding” stock—where consistent demand and operational efficiency can quietly create shareholder wealth over the next decade.

8. Persistent Systems Ltd. (PE: 23.1, Growth: 25%)

Persistent Systems is becoming the poster child of India’s mid-cap IT success story. Its strength lies in digital engineering and deep partnerships with cloud leaders like Microsoft and AWS. With a P/E of 23.1, the stock trades at a discount to larger peers despite revenue growth projected at 25%—a classic high-growth, undervalued setup. Persistent is riding tailwinds from AI integration projects, cybersecurity, and next-gen software solutions. Its increasing client stickiness suggests higher recurring revenues, improving visibility. While rising employee costs remain a margin headwind, its scalable business model balances this risk. For investors, Persistent represents a story where innovation and financial discipline go hand in hand—a tech stock with compounding potential without the valuation froth often attached to the sector.

9. Deepak Nitrite Ltd. (PE: 15.4, Growth: 20%)

Deepak Nitrite has quietly become one of India’s chemical champions, moving from commodity chemicals to value-added specialty solutions. The company’s PE of 15.4 makes it look inexpensive for a player growing at 20% CAGR, especially given global supply chain diversification away from China. Demand for performance products and intermediates in pharma, agrochemicals, and paints keeps margins resilient. Deepak’s strategy of forward integration ensures it captures more value along the chain, reducing cyclicality. While input cost volatility remains a concern, its operational excellence and export competitiveness give it an edge. Investors looking for an India-China+1 play in chemicals will find Deepak Nitrite a compelling pick—where global demand and domestic tailwinds align for sustained growth.

10. Crompton Greaves Consumer Electricals (PE: 19.7, Growth: 18%)

Consumer durables often reflect India’s rising middle-class aspirations, and Crompton Greaves has been riding that wave. With strong brand recall in fans, lighting, and appliances, it commands a loyal customer base. Trading at a P/E of 19.7 with expected 18% growth, the stock looks attractive in a sector where leaders often trade at higher multiples. Crompton is focusing on premiumization—launching energy-efficient fans, smart lighting, and kitchen appliances, which carry better margins. Its distribution network ensures rural penetration, while urban demand adds volume. Risks include raw material inflation and heavy competition, but Crompton’s balance of innovation and brand equity keeps it in a sweet spot. This stock is a steady consumer play, offering growth with defensive qualities.

11. APL Apollo Tubes Ltd. (PE: 20.5, Growth: 23%)

APL Apollo is India’s largest structural steel tubes manufacturer—a business directly linked to infrastructure, real estate, and industrial demand. Its PE of 20.5 looks fair, but when matched with 23% growth, the valuation tilts to the attractive side. APL Apollo benefits from a shift towards steel tubes in construction due to cost efficiency and design flexibility. With aggressive capacity expansions and distribution strength, the company is scaling rapidly. Export opportunities also provide an additional growth lever. While steel prices can be volatile, APL’s focus on value-added products cushions margins. For investors betting on India’s infrastructure story, APL Apollo is a clear “pick-and-shovel” play—a supplier enabling the construction boom without direct real estate risks.

12. Can Fin Homes Ltd. (PE: 16.2, Growth: 19%)

Housing finance remains one of India’s most reliable growth sectors, and Can Fin Homes has carved its niche in affordable housing loans. At a PE of 16.2 with growth pegged at 19%, it looks undervalued compared to peers trading at higher multiples. The company’s conservative lending practices, strong asset quality, and efficient cost management keep risks low. With India’s urbanization push and government-backed affordable housing schemes, loan disbursement volumes should continue climbing. Risks include rising interest rates, which could compress margins, but Can Fin’s focus on salaried customers ensures relatively stable collections. For investors, this is a classic “steady compounder”—where simple, predictable growth drives long-term value creation.

13. Balrampur Chini Mills Ltd. (PE: 11.5, Growth: 17%)

Sugar may sound cyclical, but Balrampur Chini has transformed itself by diversifying into ethanol production, reducing dependence on raw sugar price swings. With a PE of 11.5 and 17% growth, it looks deeply undervalued. Government's ethanol blending policy provides a structural growth driver, while steady demand for sugar ensures base-level stability. Balrampur’s efficient operations and focus on green energy transition improve margins and resilience. Risks remain in the form of monsoon dependence and fluctuating sugar cycles, but ethanol integration offsets these concerns. For investors, this is a story of cyclical transformation—where a traditional commodity business is reinventing itself as a renewable energy and agro-based play.

14. Bharat Forge Ltd. (PE: 18.3, Growth: 20%)

Bharat Forge stands as a global leader in forging and automotive components, but its real story is diversification. Beyond auto, it is expanding into defense, aerospace, and clean energy components. With a PE of 18.3 and growth expectations of 20%, it looks attractively priced for the kind of markets it is entering. Demand from CVs, EV components, and defense contracts provides multiple levers of growth. Its engineering expertise and global customer relationships make it hard to displace. Risks lie in cyclical downturns in auto demand, but diversification into defense and renewables reduces volatility. For investors, Bharat Forge represents India’s move from being just a supplier to a global engineering powerhouse.

15. Jindal Stainless Ltd. (PE: 12.9, Growth: 22%)

Jindal Stainless has quietly turned around from being debt-heavy to becoming a lean, export-competitive stainless steel leader. At a PE of 12.9 with projected 22% growth, the stock looks highly undervalued. Rising demand in infrastructure, kitchenware, railways, and EV components provides steady growth triggers. The company’s backward integration and cost efficiencies keep it competitive globally. With stainless steel being preferred for its durability and sustainability, long-term demand looks strong. Risks include global price fluctuations and import competition, but Jindal’s scale and balance sheet improvements reduce vulnerabilities. For investors, this is a turnaround story—where operational discipline and industry tailwinds can drive outsized returns.

16. PI Industries Ltd. (PE: 24.2, Growth: 19%)

PI Industries is one of India’s most innovative agrochemical companies, focusing on high-margin custom synthesis and specialty products. Trading at a PE of 24.2, it looks slightly pricier than peers, but its 19% growth makes the valuation reasonable. The company’s strength lies in its R&D-led approach and deep partnerships with global innovators, giving it sticky long-term contracts. With rising demand for food security and crop protection, PI’s products are in structural demand. Risks include regulatory hurdles in the agrochemical space, but its diversified portfolio mitigates them. Investors should view PI as a defensive growth stock—steady, resilient, and aligned with long-term agricultural needs.

17. Torrent Power Ltd. (PE: 14.7, Growth: 18%)

Torrent Power combines conventional power generation with increasing exposure to renewables, making it a balanced energy play. Trading at a PE of 14.7 with 18% growth, it looks undervalued for a utility stock in transition. Torrent benefits from operational efficiency, a strong distribution network, and expanding solar and wind capacity. As India pushes towards green energy, Torrent is well-placed to ride the transition. Risks include regulatory changes and input cost fluctuations, but its stable cash flows from power distribution provide a cushion. For investors, Torrent Power offers defensive stability with an ESG growth angle—a rare mix in the power sector.

18. Sun TV Network Ltd. (PE: 15.9, Growth: 17%)

Sun TV remains a regional media giant, with dominance in South India’s broadcasting market. Its PE of 15.9 paired with 17% growth looks modest for a company with sticky viewership and rising digital monetization opportunities. While TV advertising remains a steady cash generator, Sun TV is pivoting towards OTT and digital content, giving it a second growth engine. Strong regional dominance ensures it faces less competition than pan-India players. Risks include declining traditional TV viewership and intense OTT competition, but Sun TV’s niche focus provides resilience. For investors, it’s a cash-rich business evolving to stay relevant—an income-generating yet growth-oriented media stock.

19. L&T Finance Holdings (PE: 13.4, Growth: 18%)

L&T Finance has been cleaning up its balance sheet and focusing on retail lending, a shift from its earlier infra-heavy portfolio. With a PE of 13.4 and 18% growth, the stock appears undervalued during its transformation phase. Its renewed focus on housing finance, rural loans, and microfinance provides steady growth avenues. Backing from L&T Group adds credibility and stability. Risks lie in rural loan collections during economic downturns, but the company’s diversification reduces concentration risks. For investors, this is a turnaround financial story—where a more disciplined and retail-driven model could lead to rerating in the years ahead.

20. Trent Ltd. (PE: 21.8, Growth: 23%)

Trent, backed by the Tata Group, is one of the fastest-growing retail players in India. With strong formats like Westside, Zudio, and Star Bazaar, it has cracked both premium and value segments. At a PE of 21.8 and 23% growth, the valuation looks attractive compared to retail peers. Trent’s strength lies in its execution—rapid store expansion, efficient supply chains, and ability to read Indian consumer trends. Rising disposable incomes and urbanization provide structural demand. Risks include competition from global retailers and e-commerce, but Trent’s hybrid strategy keeps it competitive. For investors, this is a rare Indian retail stock with scalability and profitability—a compounding story in the making.

Patterns Emerging from These Stocks

Across these 20 names, one pattern is clear: India’s growth is no longer driven by one or two sectors. From IT and chemicals to retail and finance, opportunities exist everywhere. Many of these companies share three traits—prudent balance sheets, strong market positioning, and exposure to structural demand themes like infrastructure, consumption, renewables, and digital transformation.

Risks to Keep in Mind

• Global headwinds (IT demand, commodity prices, interest rates) could impact earnings.

• Valuation traps—some stocks may appear cheap on P/E but are exposed to cyclical risks.

• Policy shifts—government regulations in finance, energy, or chemicals could alter growth trajectories.

• Execution risks—scaling fast can strain balance sheets if not managed carefully.

Final Thoughts

Low PE + High Growth stocks are where valuation meets opportunity. The market often overlooks them while chasing flashy high-multiple names, but disciplined investors know compounding often starts in these forgotten corners. The companies discussed here offer a blend of resilience and growth—not risk-free, but compelling for long-term portfolios.

If India’s growth story is about broad-based participation, then these 20 names may well be the quiet engines powering the next decade of wealth creation.